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8 Common mistakes entrepeneurs make in the development of food and beverages.

8 Common mistakes entrepeneurs make in the development of food and beverages.

 

BatatasIncredible as it may seem, for many people, developing food on an industrial scale is the same as cooking for the family.

Sometimes our group of consultants is sought to enable a “great idea” of food business that has been developed at home. And, always, the group helps the entrepreneur to keep his foot on the ground, to be more realistic about the viability of the idea. Sometimes customers come to us because they have tried to develop the product at home and it did not work.

Many mistakes are made during the process, starting with the conception of the business idea.

MISTAKE 1: Do not ask yourself why you are wanting to produce a specific line of product as a business. Only answering this first question that we can take the next step.

MISTAKE 2: Do not evaluate the market and the resources needed to move to the next stage.

MISTAKE 3: Develop the product in the home kitchen without any professional technical supervision, normally do not presents the best formula and always it is not the best process to be reproduced in an industrial scale.

MISTAKE 4: Do not use industrial ingredients. The ingredients sold in the supermarket is not the same as the one for industrial use with the exception of the basic ingredients: sugar, vegetable oil, salt and perhaps water. The solution here is to work only with industrial ingredients. You will have to look for suppliers who manufacture ingredients for the industry.

MISTAKE 5: Do not use a suitable scale.  The scale used in home cooking is not accurate. The half gram, which the culinary scale does not measure, it is important in industrial production.

MISTAKE 6: Rely on nutritional information provided on the ingredient label purchased at the grocery store. There are rules defined by ANVISA (Brazilian Food Regulatory Federal Agency) for the calculation of nutritional values. The labeling values are already rounded off, so if the sodium content of the portion is less than 5 mg it will appear as zero when in fact it is not..

MISTAKE 7: Do not know the process. You really can not develop a product if you do not know how it will be processed. For the start ups companies in the food segment the option to operationalize the product manufacturing and sometimes the distribution is through outsourcing. Unless you are prepared to build a factory (capital investment and the time needed to start to trade), your process needs to reflect the process of existing manufacturers, not vice versa.

MISTAKE 8: Do not know the regulatory requirements of the food sector. There are rules for marketing the packaged food product. It goes from the requirements of good manufacturing practices to the product in the consumer’s home. The regulations cover to develop the formulation with the ingredients allowed by the legislation, registration and/or communication of the product with ANVISA (Brazilian Food Regulatory Federal Agency), development of packaging that will protect the product, and the label with the product attributes claims.

There are many other details, such as intended production scale, distribution channels, but the text would be very extensive. Therefore, dear entrepreneur before spending a huge time perfecting the product recipe in an amateur way it is better to evaluate the misconceptions exposed above and seek professional advice. Developing a product can cost you a lot, especially if you get the wrong path.

Article author: Beatriz del Fiol

Food Engineer, Specialist in Industrial Management, Specialist in Quality & Productivity, MSc in Nutrition, FIPE Researcher, Quality Management Systems and Food Safety Consultant, HACCP auditor certified by ASQ (American Society for Quality), Partner of PBC – Food & Beverages Consultants.